After weeks of rumor and speculation, Amazon.com confirmed today it is opening a 1-million square-foot warehouse and hiring 1,000 more people in metro Detroit.

“We are very proud to welcome Amazon to Shelby Township,” Township Supervisor Rick Stathakis said. “Everyone knows what an amazing success Amazon is, and the fact that Amazon chose to expand its operations in Shelby Township lets the world know Shelby Township has the services, infrastructure and ability to meet the needs of the top business organizations in the world."

But, not everyone is cheering.

"Initially, it would look attractive to the community," said Norm Augustinus, a Shelby Township novelist who, in his spare time, has been watching the project site transform. "It looks like a good thing on the onset, but it could have much deeper consequences."

The new warehouse is part of Amazon's plan to add a cluster of large and small distribution centers in southeast Michigan. The fear, however, is that Amazon — a competitor to traditional retailers — will destroy more Michigan jobs than it creates.

Now, a group led by businessman Dan Gilbert is seeking to convince the Seattle-based retailer to go a step further and put a second corporate headquarters, what it's calling HQ2, in Michigan.

Amazon promises HQ2 will invest $5 billion and create 50,000 jobs.

But, Amazon experts have said they are uncertain how a company like Amazon will manage two headquarters, which is highly unusual, and they believe that Detroit is a long shot.

"I want to say this to you in the kindest of ways," said James Thomson, a former Amazon employee who is now a consultant and author of a book on Amazon. "Every city thinks they have a chance at this, but the reality is Amazon already has its list of two or three cities."

Amazon, he said, is not likely to look at 50 different bids and say, "You all have an equal chance of winning." He added that it's going to be a situation where Amazon says "we're looking to solve two or three problems immediately — can you solve them with your bid?"

Amazon, Thomson said, is seeking to open a second headquarters because it can't find enough talented workers to fill thousands of computer engineering jobs in Seattle. The jobs, he said, pay between $120,000 and $175,000, and will likely turbo boost development in whatever city it select.

The downside: The cost of residential and commercial real estate will skyrocket.

Critics have concerns

Amazon is not a "warm and fuzzy company," Thomson said. It can be a brutal company to work for and, only until recently, has it been a company that has been known to show much interest in being involved in the local community.

"It's not like a local bank that's very integrated into the community and sponsors the local baseball team. That's not Amazon's idea of doing things," he said. "They're in a position they can afford to pay a lot of money for talent. They can pay a lot for land. For everyone else who can't afford to pay for talent and land the same way, it's very frustrating."

Thomson said what is likely to keep Detroit out of the running for HQ2 is a lack of tech talent to meet Amazon's needs and the question of whether the city can overcome a perception among some executives that it's not a desirable place to live.

Critics of Amazon — which sells books, clothing, electronics and even groceries — are terrified that the online retailer is becoming too dominant and putting traditional retailers out of business.

Augustinus, who has his doubts about whether the Shelby Township project benefits Macomb County, said he has been talking to people on the site as the development has unfolded. Until now, Augustinus said, the project has been shrouded in secrecy, with workers on site referring to the project in code words.

At the same time, he said, someone — or an organized group — has been putting up signs near the site in protest. One of the first signs to appear after the rumors started to swirl about the warehouse, was a banner attached to a fence that read: "Amazon = Devastation."

He said the signs aren't up for more than two days.

But, he added, they keep appearing.

Amazon in metro Detroit

Amazon's first large distribution center in the state, a 1-million square foot warehouse in Livonia, is expected to create up to 1,500 jobs and open in the fall. Amazon already has a small center in Brownstown, and other centers are slated for Hazel Park and Romulus.

The Shelby Township center is expected to bring Amazon’s workforce in Michigan to more than 3,500.

A crew member works on the assembly line at Amazon's fulfillment center during a media tour on Wednesday, July 26, 2017 in Livonia. (Photo: Elaine Cromie, Special to the Free Press)

To seal the deal for Amazon's two announced centers — in Livonia and Romulus — the state offered $12.5 million.

Gov. Rick Snyder touted Amazon's investment as "convergence between the tech and manufacturing sectors," and as proof of "Michigan’s diverse, hardworking talent pool and reformed business climate."

By expanding its distribution network, Amazon can push Prime subscriptions and reduce the time it takes to get packages to customers. This helps undercut one of the key advantages that brick and mortar stores still hold over the online seller: instant gratification.

“Michigan has been a great place to do business for Amazon and we look forward to adding a new fulfillment center to better serve our customers in the region,” said Sanjay Shah, Amazon’s vice president of North American operations. “The state has been a source of exceptional talent for Amazon, and we’re proud to be creating great jobs with benefits for Michiganders.”

But, skeptics also see some of the dangers of Amazon's expansion.

Last month, Eastern Michigan University said it is reducing the size of its student center bookstore so the online juggernaut can build and open a package pickup center this fall.

Half of all U.S. households subscribe to the retailer's membership program Amazon Prime, which promises two-day delivery, according to the Institute for Local Self-Reliance.

The organization said in a report last year that Amazon "destroys more jobs than it creates."

"For every one or two or three jobs they offer, maybe two will disappear in the community," Augustinus speculated. "How does Best Buy keep up with them? How does Kroger keep up with their prices and instant delivery? How does any store nearby compete?"